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Budget public hearing dates in early March set by city council

Boone City Council members unanimously approved the date of March 3 for two public hearings on proposed city budgets at their regular monthly meeting in council chambers Monday night.

Public hearings for the 2014-15 fiscal year (FY) budget and the Capital Improvement Projects budget will begin at 7 p.m. in council chambers in Boone City Hall on 8th Street. Copies of both budgets can be seen in the mayor and city clerk’s offices and Ericson Public Library.

In the proposed 2014-15 FY budget the estimated tax levy rate per $1,000 valuation on property within city limits is $15.63. The rate for agricultural land is $3 per $1,000 valuation. The city must submit its budget to the state’s department of management by March 15, according to state law.

City Administrator Luke Nelson briefed council on the Economic Development Committees’ (EDC) negotiations with JCH Enterprises, Inc. regarding an agreement for private development. The committee has been researching ways to promote “some low to moderate income development within the community for affordable housing,” Nelson said.

“Affordable housing” is defined as homes that would sell for $175,000 or less, he said. When the city uses Tax Increment Financing for residential housing that is beyond that price range state law requires the city to set aside a certain percentage for every dollar spent in financing those projects, he said.

JCH Enterprises, Inc. is building several homes on the site of the former Bryant Elementary School near Fifth and Cedar streets and is planning to building a few more, Nelson said. The EDC wanted additional homes built and not just one a year, he said. To encourage the development EDC is

offering a $5,000 grant per lot that can help offset the cost of utilities.

City Attorney Jim Robbins drafted an “Agreement For Private Development” that has been reviewed by JCH, Nelson said, while noting that it stipulates “no less than two single family residences must take place in a given year before it can receive the $5,000 grant per residence.”

Construction must begin this year, the homes cannot sell for more than $175,000, and the property owners can apply for tax abatement under the city’s Urban Revitalization Plan, according to the agreement.

“So between this program, which essentially is allowing the developer to sell those homes at a discounted rate, that’s $5,000, plus the tax abatement” is a “tremendous opportunity for this type of housing,” Nelson said.

Councilman Nick Mallas, Third Ward, asked the price of the homes currently being built there. Nelson said they are in the $180,000 range.

Mallas asked if there was a bottom line the homes could sell for. No, Nelson said.

Councilman Kevin Hicks, Fourth Ward, pointed out that a modular home could be built on the site. Mallas said that he wouldn’t be too happy if he bought a brand new home there and then “a modular home was built behind it.”

At-large Councilman Gary Nystrom noted that the agreement is not a “blanket approval for anybody who does anything there. This is for stick-built homes that this guy’s building.”

“The intent was for him to continue to build homes like he has been building,” he said, noting that Mallas made “a good point.”

Council approved the resolution in its consent agenda.

City Building Official Ed Higgins briefed council on a request for a change order for the amount of $625 for a housing rehabilitation project at 1525 5th Street. The project was part of the city’s Community Development Building Grant project which rehabilitated 11 homes with grant funds that exceeded $300,000. This was the final project, Higgins said, noting that the “actual project came in almost $4,000 under budget.”

The company, Simmering-Cory, did have a change order after the project began for a $500 credit for roof sheeting, which it later discovered was not needed, Higgins said.

“From what the bid was ($32,950) we’re actually looking at a $125 increase on what was bid by the contractor,” he said. “Simmering-Cory runs this project. They’ve been very good, very conservative. We’ve had a good working relationship with them and I’m very confident in what they’re asking for.”

In the final inspection city Building Inspector Scott Hull found smoke detectors not interconnected as required by the National Electrical Code, according to Higgin’s Action Form. Simmering-Cory’s inspector interpreted the code differently, Higgins said.

“Their interpretation on what the code said was different,” he said. “Because it was a remodeling project their interpretation was different.”

In department reports, John Rouse, director of public works and parks, noted that there have been 13 water main breaks to date.

“This thaw helped but when we get warm weather and water, it forces the frost down deeper so I think we’re going to have more issues,” he said.

Stevenson noted there were a number of places in the city where the water is not draining. Rouse said some of the intakes were still frozen over and they will be addressed “in the next few days,’’ adding, “if we get rain Thursday we’ll have big issues.”

“Good job on the snow removal,” Hicks told Rouse.

City Engineer Wayne Schwartz updated council on the city’s Waterworks Dam Project, which is modifying its low-head dam into rock arch rapids.

Richards Construction is modifying the dam, located about seven miles northwest of Boone on the Des Moines River near the city’s water treatment plant, by placing large stones and boulders on it. The rocks will create rapids and remove the deadly recirculating current below the dam, which has killed four people since 1971, according to the Iowa Whitewater Coalition.

Keller Excavating in Boone is delivering the stones for the approximately $400,000 project, which is being funded by state and federal grants and the city’s water reserves fund. Keller’s pay request of $137,269 was approved.

“Last week they started doing the Weir Stones so they’ll probably pick up the pace,” Schwartz said.

In a previous meeting council approved the project’s Feb. 28 completion date.

Utilities Superintendent Roy Martin asked council to award the grit/potable water improvement project at the city’s waste water treatment plant to C.L. Carroll Co. Inc. out of Des Moines.

“He’ll be the plumbing contractor to replace the piping and pumps,” Martin said. “We’re trying to get this done before the spring rains hit because that’s when it washes all the lines out and we really get a lot of flooding.”

“We’re still looking at this project because right now we’re at the level of our budgeted high,” he said. “So I would ask $48,000. I may cancel out the $18,000 for replacing the water line. But I would like approval for the full 48 depending on if we have the money to budget the whole thing.”

Regarding the city’s water tower painting project, the final payment to J. R. Stelzer Co. is $11,692.30, Martin said. Council unanimously approved the payment.

Fire Chief Justin Adams told council that if it approves the resolution authorizing destruction of a house just east of Herman Park at 723 Lincoln Ave. it would be used for fire fighter training. The training is scheduled for March 23.

“If that’s approved tonight,” he said, “letters will go out to the neighboring residents about when we’re going to the do the burn, as a courtesy. This is just a heads-up in case you receive a few calls about the notice to burn the park house as a training burn.”

The resolution was approved.

Six Boy Scouts from Boy Scout Troop 132 from Augustana Lutheran Church in Boone attended the meeting as part of the requirement to earn their community citizenship merit badges. Scout Master Kat Anderson, Roy Gorsch, committee chairman, and scouts asked council members and Mayor John Slight to explain what city council does.

Slight briefly explained council’s operation. Gorsch asked why the elected officials ran for office. Slight and council members explained why they ran for office and the number of terms they have served. Nelson and Treasurer/Finance Officer Ondrea Elmquist introduced themselves and their titles.

Piklapp updated council on the approach of Emerald Ash Borer (EAB), which is small green invasive wood boring beetle that attacks and kills ash trees. It has been confirmed in Allamakee, Des Moines, Jefferson, Cedar, Union and Black Hawk counties, according to the Iowa Department of Natural Resources (DNR).

Picklapp said the City of Waterloo has earmarked $4 million to remove its ash trees “as soon as possible.”

Boone has 1,100 ash trees in the city’s right-of-ways, according to Rouse.

Piklapp said the best case scenario for removing the ash trees would cost the city $200,000.

“I’d like to see the staff start research,” he said

Rouse said an Iowa State University Extension & Outreach etymologist would speak about EAB in both a city staff meeting and then a public meeting at the Boone County Community Fairgrounds on April 7. Rouse said he would have more details forthcoming.

The $70,000 wood chipper that Rouse recently requested on the Local Option Sales Tax budget would kill the larvae, Piklapp said.

“It’s sort of like a Dutch Elm disease type thing coming,” Rouse said. “It’s going to be bad. A lot of home owners have ash trees. They’re a fast-growing shade tree. When Dutch Elm disease came through they planted a lot of ash trees.”

Earlier this month the DNR and the state’s department of agriculture and land stewardship announced an EAB state-wide quarantine. The DNR is requesting Iowans not to transport firewood across county or state lines as moving firewood poses the greatest threat to quickly spreading EAB or other pests even further, according to the DNR.